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Economic fortunes: Economy has turned a corner, says central bank
By Our Correspondent
Published: July 11, 2014
KARACHI:
The State Bank of Pakistan (SBP) has said the country’s economy ‘appears to have turned a corner’ during the third quarter (January-March) of 2013-14.
In its third quarterly report for 2013-14 on the state of the economy released on Thursday, the central bank termed the ‘revival of economic activity’ a key development in the last fiscal year when real gross domestic product (GDP) growth clocked up at 4.1 per cent — highest in the last five years.
The report says that after many years of low growth, sentiments about the economy seem to have improved. Manifestations can be seen in the rebound in real GDP growth, rise in private sector credit, contained fiscal deficit, subdued inflation outlook, sharp increase in foreign exchange reserves, and the appreciation and subsequent stability in the exchange rate. It mentioned that improvements in the economy were the result of the government’s resolve to address the energy shortage, growing perception of business-friendly policies, and external inflows that have recently been realised. More specifically, the auction of 3G/4G licences, larger than projected inflow via Eurobonds, programme loans from the international financial institutions ( IFIs), and SBP’s efforts to support the foreign exchange reserves have sharply improved the outlook of the country’s external sector as well as fiscal position, it said.
However, the report emphasised that “these signs of improvements should not discount the challenges faced by the economy; and efforts for much needed structural reforms should continue.”
Published in The Express Tribune, July 11th, 2014.
By Our Correspondent
Published: July 11, 2014
KARACHI:
The State Bank of Pakistan (SBP) has said the country’s economy ‘appears to have turned a corner’ during the third quarter (January-March) of 2013-14.
In its third quarterly report for 2013-14 on the state of the economy released on Thursday, the central bank termed the ‘revival of economic activity’ a key development in the last fiscal year when real gross domestic product (GDP) growth clocked up at 4.1 per cent — highest in the last five years.
The report says that after many years of low growth, sentiments about the economy seem to have improved. Manifestations can be seen in the rebound in real GDP growth, rise in private sector credit, contained fiscal deficit, subdued inflation outlook, sharp increase in foreign exchange reserves, and the appreciation and subsequent stability in the exchange rate. It mentioned that improvements in the economy were the result of the government’s resolve to address the energy shortage, growing perception of business-friendly policies, and external inflows that have recently been realised. More specifically, the auction of 3G/4G licences, larger than projected inflow via Eurobonds, programme loans from the international financial institutions ( IFIs), and SBP’s efforts to support the foreign exchange reserves have sharply improved the outlook of the country’s external sector as well as fiscal position, it said.
However, the report emphasised that “these signs of improvements should not discount the challenges faced by the economy; and efforts for much needed structural reforms should continue.”
Published in The Express Tribune, July 11th, 2014.
